Start up's consistently under estimate costs
Posted on 14 Dec 2016
Survey: Start up"s consistently underestimate accountancy costs
Small businesses are paying an average of £22,756 in admin costs during their first year of trading, according to new research from online business service Geniac, which says typical costs include accountancy, company formation, HR and legal services. Small businesses are also consistently underestimating their accountancy costs, Geniac stressed, with those surveyed budgeting £1,723 less than the amount existing business owners actually incurred in their first year, and almost two-thirds (64%) of small business owners saying they get hit with unexpected costs. Mike Galvin, co-founder of Geniac, said: “It’s concerning that start-ups and small businesses are not only losing profits and staff but are readjusting growth plans because they’ve underestimated the cost of starting up".
